The Nigerian Stock Exchange was founded in 1960 as the Lagos stock Exchange. It started operation in Lagos in 1961 with 19 securities listed for trading. In December 1977 it became known as the Nigerian Stock Exchange, with branches established in some of the major commercial cities of the country.

The Nigerian Stock Exchange is regulated by the Securities and Exchange Commission, has the mandate of surveillance over the exchange to forestall breaches of market rules and deter and detect unfair manipulation and trading practices. The Exchange has an automated trading system. Data on listed company’s performances are published daily, weekly, monthly, quarterly and annually.

The Nigerian Stock Exchange is organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply. Stock Exchange is basically served as primary markets and secondary markets.

Primary markets is where corporations, governments, municipalities and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures. Secondary market is where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system. Stock Exchanges impose stringent rules, listing requirements, and statutory requirements that are binding on all listed and trading parties.
Stock exchanges also provide facilities for issue and redemption of securities and for other financial instruments, and capital event including the payment of income and dividends. Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as “continuous action” markets, with buyers and sellers consummating transaction at a central location, such as the floor of the exchange.


The Nigerian Stock Exchanges has brought rapid economic development to the Nigerian economy. The Stock Exchange has developed the financial market and enable investments which where intercity illiquid to become liquid, all these to some extent.

The problems associated with the Nigerian stock Exchange are price-fixing and over valuation of shares, arising from insider dealings. The universal banking system has also contributed to the problems associated with the Nigerian stock Exchange. Another problem associated with the Nigerian stock exchange is lack of transparency which has brought misery and poverty to investors. Also it is feared that the Nigerian has “too many” things to do that it will be unable to develop its market structure effectively and efficiently.

The objectives of the study are to find out the following:
a) To examines whether the Nigerian stock exchanges have achieved the objectives for which it was established.
b) To evaluate the ways in which investors respond to the capital market during and after the crisis.
c) To determine the roles played by the stock exchange during the global economic meltdown.
d) To examine the influence in which the individual motivate the system failure.

a) Does Nigerian Stock Exchange achieve the objectives for which it was established?
b) Do investors respond to the changes in market operation during and after the financial crisis?
c) Does Nigerian Stock Exchanges play any role during the global economic meltdown?
d) Is the crisis individually motivated or generally a managerial and system failure?

The following research hypotheses were formulated to guide this study:
Hypothesis 1
H0: Nigerian Stock Exchanges does not play any significant role during the global economic meltdown.
H1: Nigerian Stock Exchanges does not play any significant role during the global economic meltdown.
Hypothesis 2
H0: The investors do not respond to the changes in market operation during and after the financial crisis.
H1: The investors do respond to the changes in market operation during and after the financial crisis.


The significance of this study is in the benefit that the findings would provide to any individual, groups, and organizations. Considering the importance of capital market in the development of Nigerian economy. The Nigerian Stock Exchange Commission in regulating the operational activities in the market, this research work is intended to bring to lime light the contribution of the bodies to assist the capital markets for it to achieve the desired optimum results.

The study concerns about Nigerian Stock Exchange-its operations and contributions to the Nigerian economy with a particular reference to Nigerian Stock Exchange, Uyo Branch.

The study covers the Nigerian Stock Exchange as related to the capital market and the Nigerian economy. The Nigerian stock exchange is taken holistically but with the Uyo branch of the exchange as a contact point. It covers the relevant issues pertaining to the Nigerian economy.
The study elicited investors response as it regards the exchange and capital market. To achieve this, investor’s response as it regards the exchange and capital market. To achieve this, in Akwa Ibom Metropolis were selected.

In the course of the study, the researcher was faced with the challenge of actually travelling to the Nigerian Stock Exchange in Uyo and visiting some stock broking firms in Akwa Ibom State.
SOURCE: it seems there was not enough time to meet up with this work. But the researcher properly managed his time effectively and efficiently. At a time it was difficult and almost impossible to continue because of lack of finance.

For the purpose of this research, the under listed terms are defined thus;
a. STOCK EXCHANGE: This is a market for the sale purchase of securities in which the prices are controlled by the laws of demand and supply. (A lite Hawkins. (1984); Nigerian stock exchange historical operation).
b. STOCK BROKER: These are members of the stock exchange (firms or individuals) who buy and sell securities on behalf of the investing public for a commission called brokerage. (Lead capital (2001); stock watch a guardian publication).
c) CAPITAL MARKET: This is a market in which long term capital is raised by industries and commerce, the government and local authorities. (Ndi-Okereke John. Onyiuke (2011) over view of the Nigerian Capital Market.
d) SHARES: A share confers on it owner a legal right to have part of the company’s profit and to exercise any voting right attached to that share. (Okigbo Patrick. Charles (1981); the Nigerian Financial System).
e) FINANCIAL INSTITUTION: These are institution that uses its funds chiefly to purchase financial assets. (Oxford Dictionary of Accounting, third edition).

This research was structured into five chapters. Chapter one is the introduction covering background of the study. Chapter two is the review of related literature while research methodology was presented in chapter three. In the forth chapter, the data collected were presented, analyzed and interpreted. The work was summarized, concluded and recommendations made in chapter five.

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